REGINA - The Government of Saskatchewan's Crown most recent oil and natural gas public offering, held on Dec. 3, raised $11,392,502 for the province, with the southeast region generating most of the activity.
Of the 56 parcels posted across the province for this offering, 51 received acceptable bids, covering a total of 13,561.384 hectares. The average sale price was $840.07 per hectare. Forty-six of the 51 lease parcels were sold, bringing in $8,887,240 for 6,754.956 hectares, while the five available licences were sold for $2,505,262, covering 6,806 hectares.
The southeast brought in $8,088,540 for 29 leases totalling 3,412.246 hectares, or $2,370.44 per hectare. Thirty leases were available.
Veren Inc. was the most active bidder in the region, picking up nine leases for $3,961,331. These leases are all situated south of Kipling, near the northeastern boundary of the Viewfield Bakken Sand Oil Pool.
The highest bonus bid received from Veren Inc. on a lease in this area was $2,351,041, an average of $4,543.25 per hectare, for a 517.480-hectare lease located 18 kilometres south of Kipling.
The highest dollars per hectare was $5,501.64 for a 129.766-hectare lease awarded to Millennium Land (222) Ltd., located 20 kilometres northwest of Alameda, within the Willmar Frobisher-Alida Beds Oil Pool. The total value was $713,925.82.
Meanwhile, bidding in the west-central area reached $2,449,481 for six leases and four exploration licences totalling 7,613.867 hectares, or $321.71 per hectare. The leases brought in $456,093 in bids, while the licences generated $1,993,388.
The licences are located near the town of Eatonia and were all awarded to Millennium Land (111) Ltd. One licence located east of Eatonia received a bid of $1,345,489, which was the highest bid on a parcel in the area.
The highest bonus bid and dollars per hectare received on a lease in this area was $170,106.90, an average of $657.84 per hectare. This 258.584-hectare lease is located two kilometres east of Eatonia and was awarded to Millennium Land (222) Ltd.
In the Lloydminster area, 10 of the 13 available leases were sold for $844,480, an average of $346.39 per hectare for 1,660.575 hectare.
The highest bonus bid and the highest dollars per hectare received on a parcel in this area was $511,874.17, an average of $658.47 per hectare. This 777.369-hectare exploration licence was awarded to Millennium Land Ltd. and is located 19 kilometres northwest of Cut Knife, near the Carruthers Cummings Sand Oil Pool.
The highest bonus bid received on a lease in this area was $81,595.66, an average of $314.69 per hectare. This 259.289-hectare lease was awarded to Millennium Land (444) Ltd. and is located 12 kilometres southeast of Neilburg, near the Freemont Â鶹´«Ã½AV Colony Sand Oil Pool.
Two leases located nine kilometres east of Lloydminster, within the Aberfeldy Â鶹´«Ã½AV Sparky Sand Oil Pool, received bids of $3,125 per hectare. One lease received a total bid of $50,487 and was awarded to Mammoth Land Services Ltd. while the second lease was awarded to Scout Energy Ltd with a total bid of $50,481.25.
The southwest region had two leases available, and one, a 97.327-hectare parcel, was sold for $10,000 or $102.75 per hectare. Fox Valley Resources Ltd. purchased the lease, located four kilometres southwest of the village of Fox Valley, adjacent to the Fox Valley Cantuar Sand Oil Pool.
After five public offerings this fiscal year, the provincial government has received $48,775,025 in revenue. The next offering is scheduled for Feb. 4, 2025.
There are six scheduled public offerings of oil and natural gas dispositions each fiscal year in Saskatchewan. Ministry of Energy and Resources says this process uses an open and competitive bidding system to issue oil and natural gas dispositions.
"Several factors affect public offering activity, including changes in oil and gas prices, land availability, geological and technological constraints, and various market conditions," the government said.
